Logitech International (NASDAQ: LOGI) is well known amongst computer users. The company consistently manufactures high-quality computer peripherals, including mice, keywords and webcams. The company has never managed to gain a grasp over the headset market. Now, they’ll attempt to change that with the acquisition of ASTRO Gaming. This week, Logitech International confirmed it had agreed to acquire the console gaming brand, which has a long history of manufacturing award-winning headsets.
Logitech G’s vice president and general manager, Ujesh Desai, admitted that ASTRO was the perfect complement to their company. “ASTRO is the leading player for premium console headsets and is the preferred headset for console esports athletes. It’s a perfect complement to Logitech G’s focus on PC gaming and we couldn’t be more excited; we love the team, the brand and the products.”
As for the co-founder and president of ASTRO, Jordan Reiss, it appears joining Logitech G will be a dream come true. “The whole team at ASTRO has always help Logitech and Logitech G products in the highest regard, so I’m ecstatic we are joining forces.” ASTRO is a pioneer in gaming audio and lifestyle products. They have a strong leadership position in the gaming headset market. The company is best known for their A40 and A50 headsets. Both of which are designed for pro gamers and gaming enthusiasts.
ASTRO recently expanded their offerings with the introduction of the A10. The transaction will involve Logitech paying ASTRO $85 million in cash. Logitech expects the acquisition to close in early August of this year. Simultaneously, Logitech announced that they’re investing in an adjacent gaming market, the console gaming market, to stimulate long-term growth in the area. For the financial year of 2018, the ASTRO acquisition is expected to add around two points of growth to the company’s top line.
It will be slightly dilutive to the bottom line this year, as Logitech integrates the business and attempts to expand ASTRO internationally.
